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OUE C-Reit prices S$150m fixed-rate notes with 3.03% interest

OUE Commercial Reit Management, as manager of OUE Commercial Reit, announced on Thursday that some S$150 million worth of fixed-rate notes have been successfully priced.

These notes, bearing interest rate of 3.03 per cent payable semi-annually in arrear, are expected to be issued on Sept 5 and will mature on Sept 5, 2020. They will be issued under the S$1.5 billion multi-currency debt issuance programme established on Aug 20, 2015.

The final order book was in excess of S$400 million, supported primarily by institutional investors, the Reit manager said.

The notes will be issued in registered form at 100 per cent of the principal amount and in denominations of S$250,000 each.

sentifi.com

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"The net proceeds will be largely used to refinance existing borrowings, as well as fund any capital expenditure or working capital requirements," said Tan Shu Lin, CEO of the Reit manager.

"With the successful fund-raising via the debt capital markets, the manager has diversified OUE C-Reit's sources of funding and improved its financial flexibility with the move towards unsecured borrowings, in line with its proactive capital management strategy."

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